The “Variable/Dual Rate” field is defined by the National Association of Realtors® (NAR) as a form of compensation in which the seller agrees to pay a specified commission if the property is sold or leased by the listing broker without assistance and a different commission if the sale or lease results through the …
What does compensation mean in real estate?
The commission is based on a percentage of the home sales price. … Using an example sale: A home sells for $200,000 with a 5.5% commission in place, as agreed between the seller and listing broker. $200,000 with a 5.5% commission equals $11,000 in total commission.
What is a variable commission agreement?
The REALTOR® Code of Ethics defines a variable-rate commission arrangement as a listing in which one amount of commission is payable if the listing broker’s firm is the procuring cause of sale and a different amount of commission is payable if the sale results from the efforts of the seller or a cooperating broker.
What is dual or variable commission?
A dual or variable rate commission arrangement is one in which the seller or owner agrees to pay a specified commission if the property is sold by the listing broker without assistance and a different commission if the sale results through the efforts of a cooperating broker, or one in which the seller or owner agrees …
What means variable cost?
A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume—they rise as production increases and fall as production decreases. … A variable cost can be contrasted with a fixed cost.
What is seller compensation?
Seller Compensation means, collectively, in connection with Permitted Acquisitions, the sum of cash paid at closing, earn out compensation, purchase money financing payable to seller, interest, or other post-closing payments and assumed debt.
What does buyer agency compensation mean?
Buyer agency compensation is the total commission to be paid for this sale, expressed as either a percentage or a constant currency amount. The available compensation types are: … %, Dollar Amount, or Combination of Gross Sale.
How can a variable commission affect the chances for contract acceptance?
If an agent sees there is a variable rate commission in the MLS, they are going to know that the agent has agreed to accept less commission than any other agent. That may make an agent less likely to show your listing (though this isn’t the ethical way of choosing which houses to show).
What is a dual agent in real estate?
Dual agency occurs when a real estate agent works on behalf of both the home buyer and seller. In most real estate transactions, it is much more common to have separate agents represent each party, as this helps avoid the conflict of interest that can happen when an agent negotiates for both sides.
What is the difference between VOW and IDX?
The difference between IDX and VOW lies primarily in the listings. IDX includes all active listings, such as for rent and for sale. VOW includes these active listings plus off-market listings and sales history data.
What is Target variable pay?
Target Variable Compensation means total annual bonus, commission or other short term cash incentive compensation at 100% of targeted performance.
What is straight commission?
Straight Commission is calculated to be the person’s wage based solely on sales. Example: … Graduated Commission is calculated into a person’s pay in addition to his/her regular salary or wage.
Is commission a bonus?
There is a tax difference between a bonus and a commission. A commission is pay based on performance, such as a percentage of sales revenue or the number of units a salesman moves. A bonus is extra pay given for exceptional performance.
How is variable cost calculated?
To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.
What is another name for variable cost?
Variable costs are sometimes called unit-level costs as they vary with the number of units produced. Direct labor and overhead are often called conversion cost, while direct material and direct labor are often referred to as prime cost.
Is rent a variable cost?
Fixed expenses: These are costs that largely remain constant, such as your monthly rent. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.